[Ferro-Alloys.com] Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) today announces its third quarter 2021 financial results highlighted by revenues of $53.9 million and net income of $9.2 million. The Company recently announced results of a pre-feasibility study which forecasts materially increased profitability through enhanced access to vanadium and achieved important milestones in the development of its vanadium-based energy storage business.

All amounts expressed are in U.S. dollars, denominated by “$”. Q3 2021 and Other Significant Highlights

Net income of $9.2 million, a 261% increase over Q3 2020; Basic earnings per share of $0.14

Revenues of $53.9 million, 96% higher than Q3 2020; Revenues per lb sold1 of $9.10, a 69% increase over Q3 2020

Cash balance of $87.6 million exiting Q3 2021

Battery Development Funding: Largo Clean Energy (“LCE”) selected to receive $4.2 million in funding from the U.S. Department of Energy (“DOE”) to scale up U.S.-based manufacturing of flow battery and long duration storage systems

First Battery Sales Contract: On July 20, 2021, LCE entered into its first VCHARGE vanadium redox flow battery (“VRFB”) sales contract with Enel Green Power España (“Enel”); LCE will deliver a 5 hour, 6.1 MWh VCHARGE system for a project in Spain and received a Notice to Proceed on July 30, 2021

2020 Sustainability Report Released: Significant progress made on environmental, social and governance priorities in furthering the Company and vanadium’s role in the global green economy

Total V2O5 equivalent sales of 2,685 tonnes, a 16% increase over Q3 2020

Production of 3,260 tonnes (7.2 million lbs2) of V2O5, a 5% increase over Q3 2020

Cash operating costs excluding royalties1 of $3.53 per lb of V2O5 vs. $3.14 per lb in Q3 2020

Solid Vanadium Demand: Average Fastmarkets European V2O5 price of approximately $9.40 per lb in Q3 2021, a 76% increase over the average in Q3 2020

Corporate Name Change and Rebrand: In line with the Company’s Board approved strategy to vertically integrate is foundational mining business and growing energy storage division, Largo announced that it has changed its name from Largo Resources Ltd. to Largo Inc.

Pre-Feasibility Study Results Released: On November 3rd, 2021, the Company announced its technical report results outlining a significant expansion of V2O5 production and reserves supported by new cash flow generation from titanium dioxide (“TiO2”) pigment co-product sales. The result is a 20-year mine life and a $2.0 Billion after-tax NPV7% for the Maracás Menchen Mine

2021 Production and Sales Guidance: Production guidance of 11,400 to 11,800 tonnes of V2O5 equivalent; Sales guidance of 11,200 to 11,800 tonnes of V2O5

UPDATED: The Company will host a webcast and conference call for its Q3 2021 results on Thursday, November 11th at 10:00 a.m. ET

Ian Robertson, Co-Chair of Largo, commented: “We believe that our two distinct, but related value propositions are clear – our shareholders own both an experienced new-economy vanadium production business demonstrating clear value upside, together with an emerging energy transition business, which provides the opportunity for incremental earnings from the manufacture and sale of vanadium-based energy storage systems. Our recently announced pre-feasibility study results support both businesses through materially enhanced forecast profitability from our vanadium and TiO2 production business and improved market share for our energy storage products. We believe the updated Largo brand embodies our commitment to deliver shareholder value accretion through the vertical integration of our two business propositions.”

Paulo Misk, President and CEO of Largo, stated: “The expansion of V2O5 production and incremental cash flows generated by the production and sale of TiO2 pigment provide clear upside to our shareholders. We were very pleased to report a 305%7 increase in Proven and Probable reserve tonnage and a 128%7 increase in Measured and Indicated resource tonnage for the Maracás Menchen Mine. We believe TiO2 production from the Company’s existing non-magnetic concentrate will enable Largo to enhance its operational competitiveness and together with its energy storage business transition, should lead to increased shareholder value for the Company. Strong vanadium prices in the third quarter resulted in the Company’s revenue and revenues per pound sold1 increasing 96% and 69%, respectively, over the same quarter in 2020. Despite lower sales results during Q3 2021 mainly due to global logistical delays, our operational results improved significantly over the prior quarter driven by improved recoveries and increased throughput.”

Q3 2021 Financial Highlights

• During Q3 2021, the Company recognized revenues of $53.9 million from sales of 2,685 tonnes of V₂O₅ equivalent (Q3 2020 - 2,320 tonnes). This represents a 96% increase in revenues over Q3 2020 ($27.5 million) due to higher vanadium prices during the quarter.
• Revenues per pound sold¹ were $9.10 in Q3 2021 compared to $5.37 per pound sold in Q3 2020, representing an increase of 69%.
• Operating costs of $32.1 million in Q3 2021 (Q3 2020 – $21.0 million) include direct mine and production costs of $18.6 million (Q3 2020 – $11.3 million). The increase in direct mine and production costs is primarily attributable to the increase in sales as well as the impact of cost increases for critical consumables.
• Cash operating costs excluding royalties¹ were $3.53 per lb in Q3 2021, compared with $3.14 for Q3 2020. The increase seen in Q3 2021 compared with Q3 2020 is largely due to the impact of cost increases for critical consumables and a slight decrease in global recoveries⁵, with 83.7% achieved in Q3 2021, compared with 84.2% achieved in Q3 2020.
• The Company recorded net income of $9.2 million in Q3 2021, representing an 261% increase over net income of $2.5 million in Q3 2020.
• Professional, consulting and management fees were $4.9 million in Q3 2021, compared with $2.1 million in Q3 2020. The increase is primarily attributable to costs incurred during the quarter in connection with LCE that was not operational in Q3 2020. In addition, the Company incurred increased legal and regulatory costs in Q3 2021 in relation to the Nasdaq listing process and U.S. regulatory requirements.
• Cash provided before working capital items of $20.3 million for Q3 2021 increased 321% compared to $4.8 million in Q3 2020. The increase resulted largely from higher revenue during the quarter resulting from higher realized vanadium prices.
• Cash of $87.6 million and working capital of $121.7 million as of September 30, 2021, compared to $79.1 million and $92.9 million, respectively, as of December 30, 2020.

Additional Corporate Highlights

Developing Largo’s Vertically Integrated Energy Storage Business: On July 22, 2021, the Company announced the appointment of Mr. Ian Robertson as Co-Chair of the Board of Directors of Largo and as Interim President of LCE. Since then, LCE has passed all tests required for Underwriters Laboratory certification of the VCHARGE energy storage system, substantially completed Phase I of Largo’s Massachusetts manufacturing facility, was selected for $4.2 million in DOE funding for further development of manufacturing capabilities and continued to develop its sales pipeline with active customer discussions representing storage requirements of over 6,000 MWh.

Solid Q3 2021 Production Results; Strong Finish to the Year Expected: Production from the Maracás Menchen Mine was 3,260 tonnes of V2O5 in Q3 2021, representing a 5% increase over Q3 2020 and the second-best quarter of production since commencement of operations. The Company achieved an excellent global recovery3 of 83.7% in Q3 2021, being 1% lower than Q3 2020 but 5% higher than the 79.9% achieved in Q2 2021. Lower V2O5 production in October 2021 of 874 tonnes was due to an unplanned mill shutdown and power outages caused by heavy rains which fell over the region during the month.

Vanadium Sales Impacted by Global Logistical Delays: Increased delays and global logistical challenges have impacted all aspects of the Company’s supply chain resulting in lower V2O5 equivalent sales of 2,685 tonnes in Q3 2021. Diligent planning and a comprehensive sales strategy have allowed the Company to deliver on all its commercial commitments up to this point. The Company expects to exit the year with a solid quarter of production and sales results in Q4 2021.

Maracás Menchen Mine Operational and Sales Results

Financial Results

• [Editor:tianyawei]